In a significant legal victory for General Hydrocarbons Limited (GHL), the Federal High Court in Lagos has lifted the Mareva injunction that had frozen the assets and accounts of the company and its directors. The decision comes after the court found that the injunction was improperly granted and in direct violation of an existing order issued by a court of concurrent jurisdiction.
Justice Dehinde Dipeolu, in his ruling, upheld the arguments presented by GHL’s legal counsel, Abiodun Layonu, SAN. The court determined that the Mareva injunction was inconsistent with an earlier order given by Justice Ambrose Lewis-Allagoa in Suit No. 1953. Furthermore, the court found that First Bank of Nigeria and its investment subsidiary, FBNQUEST LTD, had failed to disclose the existence of this prior order when seeking the Mareva injunction, thereby misleading the court.
According to the ruling, the failure of First Bank to present full and accurate information amounted to a deliberate suppression of facts. The court strongly condemned this act and emphasized that such misrepresentation had unjustly led to the freezing of GHL’s accounts. Given the circumstances, Justice Dipeolu stated that the only appropriate course of action was to lift the asset freeze and restore GHL’s financial operations.
The case began when First Bank, through an ex-parte application, sought and obtained an order to freeze the assets and accounts of General Hydrocarbons Limited, along with 15 other entities. This move was made despite an existing judgment that should have prevented such an injunction from being issued.
In response, GHL filed an appeal to have the order discharged, arguing that it was procured through fraudulent misrepresentation and the concealment of crucial material facts. The company contended that First Bank had acted in bad faith by withholding relevant legal information from the court, which ultimately resulted in an unjust ruling against them. The court, upon reviewing the arguments, agreed with GHL’s position and consequently set aside the asset freeze.
Beyond the legal win in Nigeria, GHL’s directors, who were adversely affected by the asset freeze, have initiated international legal proceedings against First Bank. They are collectively seeking $1 billion each in damages for defamation and wrongful freezing of their accounts.
Additionally, GHL is taking action against First Bank’s legal representatives, Babajide Koku, SAN, and Victor Ogude, SAN, by filing a formal complaint with the Legal Practitioners Privileges Committee. The company alleges that the lawyers engaged in unprofessional conduct by failing to provide complete and transparent information to the court while representing First Bank’s interests.
This ruling marks a significant victory for General Hydrocarbons Limited and underscores the importance of full disclosure in judicial proceedings. Legal experts note that the case serves as a crucial reminder that financial institutions must act with integrity and accountability when seeking court orders that can significantly impact businesses and individuals.